FOCUS Enhancements and MGI To Offer CommandPost Control Panel With VideoWave 4 Software; Combo Makes Editing Video on Computer Like Working in Production Suite.

Business Editors/High-Tech Writers

WILMINGTON, Mass.--(BUSINESS WIRE)--Nov. 15, 2000

In a move benefiting users of business and home computers for video editing, FOCUS Enhancements, Inc. (Nasdaq:FCSE), a developer of video conversion technology for the TV and computer industries, today announced an agreement with MGI (TSE:MGI) that combines MGI VideoWave 4, the industry's top-selling consumer PC video editing software, with FOCUS's CommandPost editing control panel.

The products, which had sold separately for a combined price of $298, are being offered together in one package for a suggested retail price of $149. The combination will be available from computer and consumer electronics retailers later this month.

CommandPost, a hardware controller that closely resembles the control panel of a dedicated video editing system, allows users to operate MGI VideoWave 4 on a PC using the same controls they would find on a conventional video editing station, instead of using computer keystrokes or a mouse. Command Post, which provides jog/shuttle wheels, a fader arm, and an axis joystick, all standard controls on editing equipment, also contains 15 pushbutton switches for both video editing and computer file control. CommandPost connects to the PC through a USB jack.

"This is a major price breakthrough for consumers as well as an important new initiative in the market for digital convergence products," said Steve Langer, Director of North America Consumer Sales at FOCUS. "By working with MGI, we will significantly increase PC channel penetration for CommandPost while simultaneously creating what is unquestionably the best value-added package in the PC video market."

"CommandPost is a very cool video editing peripheral delivered to the consumer level," said Ihor Petelycky, General Manager of Video Products for MGI. "The combination of VideoWave 4 with CommandPost is an extraordinary value that further distinguishes MGI as the market leader in consumer PC video."

MGI's innovative VideoWave 4 is used by home and business users to create home movies, professional quality business presentations, and web content using video captured from any camcorder, TV, VCR, webcam, or similar device with a composite or digital video output.

CommandPost is manufactured by Videonics, Inc. (Nasdaq:VDNX), a maker of digital video post production products. Videonics and FOCUS recently announced a merger agreement, expected to be completed later this year.

In the FOCUS/MGI package, CommandPost is integrated with the MGI VideoWave 4 software. Customers who purchase the package and wish to upgrade CommandPost software to support the other editing programs can acquire the upgrade software from Videonics for $49.95.

Company Information

MGI is a leading provider of visual media software products and infrastructure that maximize the use of digital visual content by businesses and individuals. We do this by providing software and services that uniquely enhance every step of the visual media communications cycle, including capturing, creating, streaming, viewing, storing, sharing, and publishing. Using our software, businesses and individuals create rich visual content to deliver optimal Internet experiences that communicate, drive user enjoyment and customer frequency, duration, transactions and satisfaction. With headquarters in Richmond Hill, Ontario, MGI employs over 300 people with offices in North America, Europe, and Asia Pacific. MGI Software is publicly traded on the Toronto Stock Exchange under the symbol "MGI."

On August 31, 2000, FOCUS announced that the company has entered into a definitive agreement to merge with Videonics, Inc. The agreement provides for each share of Videonics common stock to be converted into 0.87 shares of FOCUS Enhancements common stock. Completion of the merger requires, among other things, the approval of the stockholders of Videonics and FOCUS. The merger is expected to be completed in December of this year.

FOCUS Enhancements, Inc., develops and markets advanced, proprietary video conversion ASICs for the converging, multi-billion dollar Internet, computer, and television industries. The Company's technology, which is sold globally through Original Equipment Manufacturers (OEMs) and resellers, merges computer-generated graphics and television displays for Internet viewing, presentations, training, education, video teleconferencing, and home gaming markets.

Videonics is a leading designer of affordable, high quality, digital video, equipment for the broadcast, cable, business, industrial, presentation, Internet, and home video production markets. Videonics products include application controllers, edit controllers, mixers, character generators, and video editing software solutions. Its stock is traded on the Nasdaq SmallCap Market under the symbol VDNX. More information on Videonics may be obtained from the Company's SEC filings, or by visiting the Videonics home page at http://www.videonics.com.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this release, which are not historical facts, are forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, continued acceptance of the companies' products, increased levels of competition for the companies; new products and technological changes, the companies' dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the companies' periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to put undue reliance on any forward-looking statements contained herein, which speak only as of the date hereof. The companies undertake no obligation to release publicly any revisions to forward- looking statements that may be made to reflect events after the date hereof or to reflect the occurrence of unanticipated events. In addition, the forward-looking statements contained herein are subject to risks and uncertainties, including the successful integration of Videonics into FOCUS, fluctuations in operating results, the timely development and acceptance of new products, product availability from suppliers, the impact of competitive products and pricing, changing TV standards and other risks set forth under the caption "Certain Factors That May Affect Future Results" in Focus and Videonics Annual Report on Form 10-K for the year ended December 31, 1999, in its quarterly report on Form 10-Q for the quarter ended March 30, 2000 and June 30, 2000 and other filings with the SEC by both FOCUS and Videonics.